India Cements Restructures Board Post UltraTech Cement Acquisition
India Cements’ board of directors is undergoing significant restructuring following UltraTech Cement’s ₹7,000-crore acquisition of the Chennai-based cement manufacturer. CEO N Srinivasan, along with several other key board members, announced their immediate resignations on Wednesday, December 25, as per a BSE filing.
The shakeup includes the resignation of Srinivasan’s family members—his daughter Rupa Gurunath, wife Chitra Srinivasan—and board member VM Mohan. Independent directors S Balasubramanian Adityan, Krishna Srivastava, Lakshmi Aparna Sreekumar, and Sandhya Rajan also stepped down. Additionally, CFO R Srinivasan is set to retire on January 1, 2025.
UltraTech Cement’s Acquisition of India Cements
The restructuring follows the Competition Commission of India (CCI)’s approval on December 20 for UltraTech Cement’s acquisition of 10.13 crore equity shares, representing 32.72% of India Cements’ shareholding. The deal also included an open offer to public shareholders for 8.05 crore shares (26% of shareholding) at ₹390 per share.
UltraTech Cement completed the acquisition on December 24, raising its total ownership to 55.49% and becoming the majority stakeholder in India Cements.
Stock Market Impact
UltraTech Cement shares dropped by 0.63%, closing at ₹11,395.55 on December 24, compared to ₹11,467.90 in the previous session. In contrast, India Cements’ shares rose by 1.75%, closing at ₹372.55 from ₹366.15. Stock markets were closed on December 25 for Christmas.
India Cements Market Share and Competitors
India Cements currently holds 8% of India’s cement market, according to Tranxcn research. Key competitors include Wonder WallCare (39% market share), UltraTech Cement (21%), Ambuja Cement (13%), and Dalmia Bharat and Sagar Cements (8% each).
New Appointments to the Board
In light of these changes, the remaining board members appointed new directors, including KC Jhanwar, Vivek Agrawal, ER Raj Narayanan, and Ashok Ramachandran. Independent directors Alka Bharucha, Vikas Balia, and Sukanya Kripalu have also joined the board to steer the company into its next phase.
The restructuring highlights a transformative moment for UltraTech Cement’s majority ownership, signaling strategic shifts in the domestic cement industry.